>> mitchell: tonight, americas >> mitchell: tonight, americas top banker is warning of a financial calamity if congress and the president can't reach a deal on the debt. nancy cordes and chip reid have the latest on the negotiations. the hacking scandal scuttles rupert murdoch's plans to expand his media empire, and now members of congress are calling for an investigation. mark phillips is on the front line with libyan rebels as they battle for a key village. and team u.s.a. advances to the finals. but will these winning women have a future in soccer once they get home? captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> mitchell: good evening. scott is on assignment tonight. i'm russ mitchell. pressure is on congress and the president to reach a deal on debt. chairman of the federal reserve

warned default could lead to financial calamity. the president met congressional leaders back at the white house today for yet another negotiating session. we have reports from nancy cordes, chip reid and anthony mason, nancy, we'll begin with you at the capitol. >> reporter: good evening. the chairman of the federal reserve had a stark warning for members of congress today. he said if the debt limit isn't raised by august 2, the federal government's cash flow could plummet by 40%, because that's how much the nation borrows. >> so this is a matter of arithmetic fairly soon after that date, there would have to be significant cuts in social security, medicare, military pay or some combination of those in order to avoid borrowing more money. >> reporter: here's why: without the ability to borrow, the federal government will take in roughly $172 billion in august. in taxes, fees and other revenue.

but its bills will total roughly $306 billion, creating a shortfall of more than $130 billion that congressional leaders like nancy pelosi will have to contend with immediately. >> have there been any discussions about which bills shouldn't get paid if we can't borrow money? >> well, first i have a more optimistic view. i believe that the united states will pay its bills and we will honor the full faith and credit of our country. >> i'm no on raising the debt ceiling right now. >> reporter: republican presidential candidate michelle bachmann and two other g.o.p. representatives insisted today that president obama and the federal reserve chairman are over-stating the risks of default. >> so i would encourage our speaker, quit believing the president when he makes these, using these scare tactics. there's money there regardless of what we do. >> reporter: those three members introduced legislation today that would pay the troops first

if there's a government shortfall. but when we asked them who shouldn't get paid? they didn't have an answer, russ, and neither it seems does anyone else up here. >> mitchell: nancy cordes, on capital hill, thank you very much. we want to go now to chip reid at the white house, with the latest on the negotiations there. chip, good evening. republican sources say today's meeting ended on a tense note with the president pushing his chair back and abruptly leaving the room. if you judge by the photos, today's negotiating session on a debt deal was all smiles, even the president and speaker john boehner seemed to be enjoying themselves. but earlier in the day boehner told a small group of reporters in his capital office that deal with the white house was like dealing with jello. some days the jello is firmer than others, he said, sometimes it's like they left it out overnight. he said the white house had backed off on sbigtsment reform so much by this past saturday that the jello was damn near liquid. the only thing the white house has been firm on, boehner said,

is the damned tax increases. that boehner said is why he called the president saturday and ended their talks on the so-called big deal, so cut the debt by $4 trillion over a decade, which he said the two men had been discussing since january. a republican source posted the -- close to the negotiate says the deals are producing little progress at this point. the white house says the president did not abruptly leave the room, he simply made his views very clear on the need to compromise, stood and said see you tomorrow. >> mitchell: chip reid, thank you very much. senior business correspondent anthony mason is here now. let's go back to the news from moody's. what exactly does that mean? >> moody threatened to do this last month. today the rating agency cited its concerns that the debt limit will not be raised on a timely basis, leading to a default on a u.s. treasury obligation. in moody's words, the risk of a short-lived default was small but rising. standard and poors put u.s. credit on negative outlook back

in april citing the same concerns. this is basically another warning shot, russ, telling congress they're running out of time. >> mitchell: how soon could all this happen? >> there's no specific timetable. they don't have to wait for a default to downgrade credit. they could do it sooner, but remember these are the same rating agencies that took enormous heat during the financial crisis for not acting quickly. they're being much more aggressive now. >> mitchell: okay, anthony mason, thank you very much. it was the president who first suggested all the leaders meet every day until a deal is done. tefore the meeting yesterday scott pelley spoke with mr. obama at the white house about what goes on behind closed doors and what's at stake for the nation. >> the consequences of a default would mean, at minimum, that interest rates would go up for everybody. for the person who is borrowing to buy a car, for the small business owner, for a person who is borrowing on their credit card. the person who is paying their mortgage, or wants to buy a

new home. everybody's interest rates will go up. >> reporter: tell me about these meetings that you're having. have there been raised voices, tense moments? >> you know, i think everybody has been professional and everybody has been polite. but i think that what we haven't seen is a recognition that at a certain point, you leave politics aside, you set aside what gives you a tactical advantage at any given moment, you leave out your ideological predispositions and you just try to figure out a problem. and the question is why wouldn't we try to solve it right now. and i think the vast majority of people across the country are looking to washington to see if we can finally do something that we say is important, that people agree is important, but requires some courage and some tough choices. >> mitchell: they did not make those tough choices in

minnesota, as a result the state government shut down two weeks ago. like washington, it's a budget deadlock between a democratic chief executive and a republican controlled legislature. dean reynolds shows us what it looks like when legislators can't figure out to keep a state running. >> reporter: on day 13 of the shut down the state parks are closed. the lottery is idle. the highway rest stops are off limits. and 22,000 workers have been laid off without pay. but the effects of minnesota's government shutdown have been even more pro found at 304 6th street in with a see california. >> i'm mad and i don't ne if i can keep my temper. >> reporter: she runs a day care center and was worried about when she'll have her monthly state subsidy to keep her business running. >> we're minnesota, this is minnesota. we don't turn our backs on our kids. and i'm scared to death of what's happening. >> reporter: so is angela noble,

she sends her two sons to sharon every day and is worried about what she'll do without the help. she's in training for a promising job and without day care, her career path could run off the road. >> this is my chance here that i finally got. it's in jeopardy if i don't have somewhere to take my boys. >> reporter: since day-care had been ruled a nonessential service, funding was up in the air at sharon's. it's all part of the chaotic mess minnesota's shutdown has created. all due to the stalemate between democratic governor mark dayton and the republican controlled legislature. >> the extreme right wing is very intractable, and the old notion that you work out a compromise and you share power responsibly is out the window. >> reporter: to close the state's $5 billion budget deficit, the governor has agreed to big spending cuts, but his plan to also raise taxes on the rich has met stiff opposition led by house speaker kurt zellers. >> once they get done taxing the rich people where are they going

to come? it's right here in middle class minnesota, middle class america because there's more of us in that group than the bigger bracket. >> reporter: late today a judge ruled that the day-care is an essential service and that funding should proceed, which is good news for day care providers like sharon born. but a sign, russ, that in this environment, minnesota is just sort of making it up as it goes along. >> mitchell: dean reynolds in st. paul, minnesota, thank you very much. now to the latest on rupert murdoch. his media empire includes the times of london, the "wall street journal" and the fox network, and he was on the verge of acquiring the british sky broadcasting satellite network. but elizabeth palmer reports the tabloid hacking scandal forced him to pull the plug on that deal today as lawmakers on both side called for investigations. >> reporter: it's a sight many people thought they would never see. media tycoon rupert murdoch in retreat. today he abandoned his controversial $12 billion plan to expand into britain's lucrative satellite television business in a surrender to

public outrage and political pressure. >> what has happened to this company is disgraceful, it got to be addressed at every level, and they should stop thinking about mergers when they've got to sort out the mess they've created. >> reporter: the prime minister david cameron met today with the parents of the teen-age girl milly dowler whose stone lies at the heart of this scandal. she was murdered in 2002, but only last monday the public learned her phone had been hacked by murdoch's paper, "news of the world." and messages were even deleted, which gave her parents false hope that she was still alive. mark lewis is the dowler family's lawyer. >> the people could not ignore the fact, and the newspapers could not ignore the fact that a dead little girl was having her phone hacked. i mean, how far... how low do you have to stoop? >> reporter: it set off ten days worth of dirty tricks allegations that murdoch papers

had hacked the voice mails of families touched by tragedy and paid off the police. eight people have so far been arrested and the "news of the world" shut down. murdoch's top manager includes british c.e.o. rebecca brooks and his son james face questions from investigators about what they knew and when. in the u.s. where rupert murdoch has his corporate headquarters, three u.s. senators are now asking the american attorney general to look into whether or not the company might have been breaking the law, especially with these allegations of police payoffs. >> mitchell: a lot of people are asking how could the u.s. congress call for something like that over a law that may have been broken overseas. >> reporter: there's a piece of federal legislation, the foreign corrupt practice act that outlaws bribery by american corporations no matter where the world they are operating. >> mitchell: i see. liz palmer, thank you very much. coming up, a big setback today for libyan rebels. our mark philips is on the front lines.

women's pro soccer, the biggest goal: survival. and how the space shuttle helped us see the universe as we have never seen it before. when the "cbs evening news" continues. at a time. that's how it is with alzheimer's disease. she needs help from me. and her medication. the exelon patch -- it releases medication continuously for twenty-four hours. she uses one exelon patch daily for the treatment of mild to moderate alzheimer's symptoms. [ female announcer ] it cannot change the course of the disease. hospitalization and rarely death have been reported in patients who wore more than one patch at a time. the most common side effects of exelon patch are nausea, vomiting, and diarrhea. the likelihood and severity of these side effects may increase as the dose increases. patients may experience loss of appetite or weight. patients who weigh less than 110 pounds may experience more side effects.

people at risk for stomach ulcers who take certain other medicines should talk to their doctor because serious stomach problems such as bleeding may worsen. people with certain heart conditions may experience slow heart rate. [ woman ] whenever i needed her, she was there for me. now i'm here for her. [ female announcer ] ask the doctor about your loved one trying the exelon patch. visit exelonpatch.com to learn more. visit exelonpatch.com there's another way litter box dust:e purina tidy cats. our premium litters now work harder to help neutralize odors in multiple cat homes. purina tidy cats. keep your home smelling like home.

[ male announcer ] every day, thousands of people are choosing advil. here's one story. my name is lacey calvert and i train professional athletes with yoga. i know how my body should feel. if i have any soreness, i'm not going to be able to do my job. but once i take advil, i'm able to finish my day and finish out strong. then when i do try other things, i always find myself going back to advil. it really works! [ laughs ] [ male announcer ] make the switch. take action. take advil. >> mitchell: mumbai, india was again the scene of a deadly terror attack.

three coordinated explosions at the height of the evening yesterday killed at least 21 people, more than 100 others were wounded. no one has claimed responsibility. four months after nato began bombing targets in libya, the western alliance is showing strains. while qaddafi remains in power. some nato members are not pulling their weight and admit it, he cannot predict how long the operation will last. adding to uncertainty, libyan rebels trying to topple qaddafi had a setback today in the western mountains. mark philips is with them. >> reporter: the battle on libya's western front has been raging back and forth since the middle of last week. the rebels always with fewer and smaller guns than the qaddafi loyalist forces have been using their usual tactics, making up in enthusiasm what they lack in fire power. the rebel games made a week ago in this fight over the town of qawalish were lost in the qaddafi counterattack today. further along the shifting front line, the rebels held their

position along a ridge. they were under fire themselves, and said they'd been planning another attack of their own before today's setback. these advances are really nibbles out of qaddafi's side rather than a threat to his tripoli fortress, but having come this far the rebels have no choice but to keep going. >> we cannot go back. >> reporter: there's no turning back, you can't go back? >> we fight or we die. there's no other solution. qaddafi doesn't give us any other solution. >> reporter: sofiyan is a lawyer who had never picked up a gun in his life before now. in the machine shop, the teachers, shop keepers and students who make up the rebel force tried to repair weapons captured from the libyan army. the few tanks they've captured are more morale boosters than useful weapons because they

don't have trained crews to use them. they go into the field with an assortment of old kalashnikoff automatic weapons, rocket repelled grenades and whatever makeshift rocket launchers they've managed to don't together. and they complain they are unable to import what they need across the border. >> do you enough weapons yet, do you have the right kinds of weapons? >> to compare to qaddafi's group, we don't have. no. >> reporter: the rebels' problem is coordination between their own positions, they didn't know the qaddafi forces were coming, and with nato whose jets weren't heard overhead for two hours after the retreat. but they were heading to the front line tonight any way, to try to stop the qaddafi offensive. surrender is not an option. mark phillips, cbs news, near qawalish, libya. >> mitchell: some of the world's best athletes play in front of empty stands. will the world cup change that? we'll take a look when we come back. with new extra-strength bayer advanced aspirin.

it has microparticles, enters the bloodstream faster and rushes relief to the site of pain. it's clinically proven to relieve pain twice as fast. new bayer advanced aspirin. vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. auto insurance is often handed down from generation to generation, because it offers a superior level of protection and because u.s.a.a.'s commitment to serve the military, veterans, and their families is without equal. begin your legacy. get an auto insurance quote. u.s.a.a. we know what it means to serve. the best in nutrition... just got better. now with even more of the vitamins your body needs. like vitamin d. plus omega 3's. there's one important ingredient that hasn't changed: better taste. [ female announcer ] eggland's best. better taste. better nutrition. the better egg. i'm friend, secret-keeper and playmate.

do you think i'd let osteoporosis slow me down? so i asked my doctor about reclast because i heard it's the only once-a-year iv osteoporosis treatment. he told me all about it and i said that's the one for nana. he said reclast can help restrengthen my bones to help make them resistant to fracture for twelve months. and reclast is approved to help protect from fracture in many places: hip, spine, even other bones. [ male announcer ] you should not take reclast if you're on zometa, have low blood calcium, or kidney problems. or if you're pregnant, plan to become pregnant or are nursing. take calcium and vitamin d daily. tell your doctor if you develop severe muscle, bone or joint pain, if you have dental problems, or if you develop new or unusual pain in your hip, groin, or thigh. the most common side effects include flu like symptoms, fever, muscle or joint pain headache, nausea, vomiting and diarrhea. share the world with the ones you love! and ask your doctor about reclast. once-a-year reclast. year-long protection for on-the-go women.

once-a-year reclast. >> mitchell: the u.s. women's soccer team is just one victory away from taking home it's first world cup since 1999. the americans beat france 3-1 today to advance to sunday's final against japan. but despite their success on the world stage, mark strassman tells us their profession is on shaky ground back home. >> u.s.a. ahead! >> reporter: for these world cup fans, more is at stake than national pride. jobs are on the line. >> yeah, i think it's a now or

never, personally. >> reporter: cat whitehill played on two u.s. world cup teams, now she as far as for the atlanta beat in the women's professional soccer league. which is short of sponsors, fans and money. some players earn less than $20,000. many work second jobs. all play in relative obscurity. >> a lot of people are unfamiliar that there's even a league around. any chance that we can get in the public eye is huge for us. >> reporter: three teams in three years have folded. in new jersey, rookie goalie kristin arnold is hoping world cup excitement will help save the league. >> i just hope that that opens up people's eyes to the fact that women's soccer is fun to watch. >> reporter: the sport's elusive goal, attract the general sports fan. it has to move beyond its core followers. preteen-age girls brought to games by their soccer moms. america produces more top female athletes than any other country. but women's professional team sports have never been a winner. american fans clearly prefer the higher stakes and rougher play

in men's leagues. after 15 years, the wnba, subsidized by the nba, only averages 7200 fans a game. the women's professional soccer league, only 2800, and dropping. when you look at the stands and see all those empty seats it's got to be frustrating. >> yes, it is frustrating. we love to play the game and we'll come out and give you the best we can. >> reporter: millions will cheer team u.s.a. in sunday's world cup final, but few will root any harder than these women. mark strassman, cbs news, kennesaw, georgia. >> mitchell: in minneapolis today they raised the roof on the metro dome. here is type lapse footage of the stadium's new fiber glass ceiling being inflated by high powered fans. from above looked like a cake rising. the old roof collapsed in december under the weight of heavy snow. the minnesota vikings hope to play there next month, that's if

the nfl lockout comes to an end. long after the last mission, nasa will keep its eye on the heavens, thanks to the shuttle, that's next.

found. the potential threat to

public safety. next on cbs 5 why it pays to shop around f f f >> mitchell: one week from tomorrow the space shuttle era officially comes to an end when atlantis returns home. the shuttle never left the earth's or bit, but the shuttle program helped scientists gaze far into the universe by launching the hubble space telescope. bill whittaker tells us that over two decades hubble has taken more than half a million pictures. >> reporter: at just under eight feet in diameter, hubble isn't the biggest telescope in the world, yet it's a giant. revealing splendors of the revealing splendors of the cosmos with a depth and clarity never seen by human eyes, peering deep into space above the glare of earth's atmosphere, it has traced the dimmest sources of celestial light, the early spark of creation. >> i believe that the hubble space telescope is the most significant scientific instrument ever created by humans.

>> reporter: john grunsfeld is deputy director of the space telescope science institutes and the former astronaut who flew the shuttle five times, three of them to service hubble. >> hubble has been able to look back in time, it's a time machine, and observe those very first galaxies, those toddler galaxies actually, as they were 13.2 billion years ago, in a universe that's 13.7 billion years old. >> and liftoff of the space shuttle discovery with the hubble space telescope. >> reporter: the first images were blurry, astronauts had to install corrective lenses. astronauts would visit hubble four more times and each time improving its vision and scope, unveiling such wondrous sights as gas clouds, billions of miles high, or stars, where stars are born. zolt levay is the scientist who created these images, transforming the codes into the colors they represent, literally painting by the numbers. >> one of the most important reasons we make these images is

to show people what hubble is doing and show people what the universe looks like. what magnificent things are out there in the universe. >> reporter: hubble proved black holes exist, that distant planets have atmosphere, that the universe is expanding at an accelerating rate. the end of the shuttle program means no more repair missions to the hubble. still, scientists say it could continue to provide an incredible array of images and information for perhaps another decade. at hubble's final tune-up in 2009, grunsfeld was the last human to touch the telescope he calls old friend. what hubble did is nothing less than change our view of the universe, and our place in it. bill whittaker, cbs news, baltimore. >> mitchell: that is the "cbs evening news." scott is back tomorrow. i'm russ mitchell in new york. good night. captioning sponsored by cbs

it's home to some of the most violent juvenile offenders in the bay area. but the fence is so run about three individuals per month that are leaving those facilities. >> it's home to some of the most violent juvenile offenders in the bay area. but the fence is so run down, many are walking away. the condition is so bad it's called a jail from another time. we have a place. let's hope so. >> going off to college but there's a catch, the bay area students who will be spending most of their time in a hotel room. same drugstore but a big difference in price. why it pays to shop around before getting your prescription filled. good evening, i'm elizabeth cook. dana is off tonight. >> good evening, i'm ken bastida. >